AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
2017 Retirement
Confidence Survey
Alicia R. Williams and S. Kathi Brown
AARP Research
December 2017
https://doi.org/10.26419/res.00174.001
A Secondary Analysis of the Findings from
Respondents Age 50+
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50
and older to choose how they live as they age. With nearly 38 million members and offices in every state,
the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen
communities and advocate for what matters most to families with a focus on health security, financial
stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new
solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a
trusted source for news and information, AARP produces the world’s largest circulation publications,
AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and
@AARPadvocates on social media.
The views expressed herein are for information, debate, and discussion, and do not necessarily
represent official policies of AARP.
Acknowledgments
The authors would like to thank the Employee Benefit Research Institute (EBRI) and Greenwald &
Associates for collecting the data for this study and making the raw survey data available to AARP for
additional analyses. A special thanks also to Carolyn (Carrie) Bawek for data checking and quality
control assistance. For additional information about this report, contact Alicia Williams at
About AARP
2
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Table of Contents
3
Overview and Key Findings ....…………………………………………………………………………. 4
Implications …..………………………………………………………………………………………….… 7
Overview of the 2017 RCS Methodology ………………………………………..………................... 8
2017 RCS Methodology: Important Notice …………………………………………………………… 9
Detailed Findings
Current Financial Situation …….………..……………………………………………………… 12
Expected and Actual Age of Retirement ……………………………………………………… 20
Retirement Confidence …………………………………………….………….......................... 24
Preparing for Retirement ……..………………………..…..…………………………………... 33
Financial Advice ……..…….................................................................................................. 41
Saving for Retirement …..…………………………..………................................................... 48
Retirement Experiences Compared with Expectations ………..………………………….. 60
Working in Order to Supplement Income …………………………………………….………68
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Overview and Key Findings
This study presents the findings of a secondary analysis of the Employee Benefit Research Institute’s
(EBRI) 2017 Retirement Confidence Survey (RCS), with a special focus on respondents age 50 and
older. The goal of this nationally representative study is to provide a better understanding of the
retirement expectations, preparations, experiences and needs of this age group.
The key findings from this study are as follows:
Preparing for Retirement
• Among workers eligible to claim Social Security benefits, more than one in 10 (13%) expect to claim
benefits before age 65, and more than a third (36%) are not sure when they will claim their benefits. (Page 28.)
• Among workers who are currently contributing to an employer-provided savings plan, the majority
would be likely to seek advice regarding their plan from an independent financial services company or
advisor (63%), the retirement plan provider (62%) and/or a financial services company or advisor
retained by their employer (53%). Just one in five (22%), however, would be likely to seek advice from
an online provider. (Page 46.)
• Among those working with a financial advisor or expecting to work with one in the future, retirees
(91%) and workers (94%) find it similarly important that the advisor provides information and advice
regarding their assets; however, retirees (79%) are more likely than workers (68%) to find it important
that the advisor manages their assets. (Page 44.)
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Overview and Key Findings (Continued)
Saving for Retirement
• More than seven in 10 (72%) workers and eight in 10 (80%) retirees have personally saved for
retirement (not including Social Security or employer-provided money); and among workers, more
than nine in 10 (93%) are currently saving for retirement. (Pages 48, 50.)
• Approximately three in 10 (31%) workers and retirees (29%) have less than $25,000 in savings and
investments. (Page 53.)
• Among workers who have not personally saved for retirement, nearly half (48%) say they would be
very likely to save if they were given an employer match, and about four in 10 (39%) say they would
be very likely to do so if their savings contribution was automatically deducted from their paycheck. (Page 51.)
Retirement Confidence
• About three in four (74%) workers and nearly nine in 10 (88%) retirees feel at least somewhat
confident they will be able to take care of their basic expenses during retirement. Fewer are at least
somewhat confident about being able to live comfortably in retirement (67% and 82%, respectively). (Pages 24-25.)
• Retirement confidence increases as the amount that workers and retirees have saved for retirement
increases. (Page 31.)
• Nearly three in five (58%) workers and more than two in five (44%) retirees are not confident they will
have enough money to pay for long-term care, should they need it during retirement. (Page 27.)
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Financial Situation
• More than a third (35%) of workers and a fifth (21%) of retirees do not feel financially secure. (Page 12.)
• A third (33%) of workers feel mentally or emotionally stressed about preparing for retirement;
approximately one in five (19%) workers worry about their finances while at work. (Page 33.)
• Being able to pay for healthcare expenses (60%, 45%), and cover future expenses (57%,43%) and
unexpected expenses (56%,46%) are top concerns for more than half of workers and more than four
in 10 retirees, respectively. (Page 14.)
Retirement Experiences versus Expectations
• Retirees who retired when planned or later than planned (43%) are less likely than those who retired
earlier than planned (49%) to say their retirement expenses are higher than expected. (Page 63.)
• About a third (32%) of retirees have worked for pay since retiring; the large majority did it because
they wanted to stay active and involved (90%) and/or because they enjoy working (83%); two in three
did it in order to have extra spending money. About four in ten (39%) retirees say they worked for pay
in retirement to make ends meet. (Page 69.)
Overview and Key Findings (Continued)
6
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Implications
7
• The fact that over one third of 50+ workers don’t yet know when they will claim Social Security benefits
suggests that this group could benefit from user-friendly tools and information that clearly explain the pros
and cons of claiming benefits at different ages. This includes:
– How their benefits increase for every month and year that they delay claiming, up until they reach
their maximum monthly benefit at age 70.
– How the age at which they claim benefits affects the amount of benefits their spouse may be eligible
both when they are living and after their death.
– The importance of treating the decision about when to claim benefits as separate from the decision
about when to retire.
• Tools and information to help people make these decisions are available at the Social Security
Administration’s website (ssa.gov), as well as AARP’s website (aarp.org).
• Employer-provided retirement savings plans play an important role in helping workers build retirement
savings. Workers who have a retirement savings plan at work are much more likely to save for retirement
than workers without a plan at work1. Behavioral initiatives offered by employers also help to increase the
likelihood that a worker will save for retirement2,3. Consequently, employers can significantly impact their
worker’s retirement security by making it easier for their employees to save, and helping their employees
build savings (e.g., providing automatic payroll deductions, employer matches, and/or automatically
increasing the employee’s contribution rate at regular intervals)._____________________1 Wu, April Yanyuan and Rutledge, Mathew S. 2014. “Lower-income Individuals without Pensions: Who Misses Out and Why?” Working Paper 2014-
2. Chestnut Hill, MA: Boston College Center for Retirement Research.
2 Madrian, Brigitte C. and Dennis F. Shea. 2001. “The power of suggestion: Inertia in 401(k) participation and Savings Behavior.” Quarterly Journal of
Economics, 116: 1149:1187. https://doi.org/10.3386/w7682
3 Employee Benefit Research Institute. 1994. “Salary Reduction Plans and Individual Saving for Retirement.” EBRI Issue Brief No. 155 (November).
Washington, D.C.: Employment Benefit Research Institute.
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• 47% of retirees in this survey retired earlier than they planned to (for reasons such as caregiving
responsibilities, difficulty finding a new job after a job loss, and/or declining health) is a testament to the
need for all workers to do what they can to prepare for the possibility that they may have to stop working
before their expected retirement age. Individuals who save as much as they can throughout their
working years (both in personal accounts and through workplace plans) may be better able to protect
themselves from the potentially devastating financial impact of an unplanned early exit from the
workforce. For example, those who do stop working earlier than expected but have a solid retirement
nest egg may be able to live off their savings and delay claiming Social Security for as long as possible,
in order to get a larger monthly Social Security benefit (rather than claiming as soon as they stop
working and finding themselves stuck with a smaller monthly Social Security benefit for the rest of their
life).
• Professional financial advice is widely desired by both workers and retirees. More than four in 10 (44%)
survey respondents say that they have sought financial advice or are likely to seek financial advice in
the future. However, in the search for trustworthy financial advice, it is important for consumers to be
sure that they are receiving advice from someone who is giving out advice that is in their best interest. A
Department of Labor rule that went into effect in early June 2017 requires anyone giving individualized
retirement advice put the interests of their clients first when giving advice about retirement
accounts. AARP has information on its website that provides several steps to take and questions to ask
when choosing a financial advisor (see http://www.aarp.org/money/investing/info-2015/best-retirement-
financial-advice.html). Additionally, AARP expects to launch a new app by the end of 2017 that will
guide users through specific questions to ask a financial advisor they are considering using.
Implications (Continued)
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Overview of the 2017 RCS Methodology
• The 27th annual measure of worker and retiree confidence about retirement.
• Conducted from January 6, 2017 through January 13, 2017 by the Employee Benefit Research
Institute (EBRI) in association with Greenwald & Associates.
• 20-minute online survey of Americans age 50 and older using GfK’s national, probability-based
KnowledgePanel®
• Data are weighted by age, sex, and education. Unweighted sample sizes are noted on graphs to
provide information for margin of error estimates.
• Margins of error for the full RCS sample (i.e., Americans age 25 and older):
– ± 3.04 percentage points for all workers
– ± 4.12 percentage points for all retirees
• This report is focused on a subset of the full RCS sample (i.e., the 1,015 survey respondents age
50 and older)
– 439 workers (not retired)
– 576 retirees
• Although the percentages shown in this report are calculated based on all sample members who
were asked the particular survey question, the percentage of sample members who declined a
response to a particular survey question is not shown because they are generally negligible.
Additionally, due to rounding and/or missing responses, the percentages in this report may not
sum exactly to 100 and/or they may not sum exactly to a stated total percentage.
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Overview of the 2017 RCS Methodology (Continued)
• NOTE: The Retirement Confidence Survey was conducted using the GfK KnowledgePanel®—a
probability-based, nationally representative online panel of adults in the U.S. As with all surveys, this
survey is subject to several sources of error including sampling error (i.e., the error that arises because
respondents constitute a random sample rather than the entire population), coverage error (i.e., how
well the sampling frame represents the population), measurement error (i.e., the degree to which a
survey statistic differs from its true value due to imperfections in the way the statistic is collected), and
non-response error (i.e., the degree to which certain types of people are unlikely to respond). In order
to mitigate against these sources of error, many surveys, including this one, undergo pretesting and
weighting.
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2017 RCS Methodology: Important Notice
Starting in 2017, the Retirement Confidence Survey moved from being administered by telephone to
using an online probability-based panel. As such, EBRI notes that users of this survey data should keep
the following points in mind and use caution when comparing this year’s findings with those of prior
years:
• Online responses have a greater tendency to use the mid-points of a scale than telephone
surveys. For example, more phone respondents select “very confident,” while online respondents
more often select “somewhat confident.” Notably, EBRI’s examination of the trended data revealed
that the combination (net) of very and somewhat responses often remained consistent with prior
years, but the share saying “very” declined.
• The presentation and availability of “don’t know” responses and refusals to respond is
different in an online survey than a phone survey. That is, “don’t know” responses were present
on screens, and respondents were able to skip questions as a means of refusal. This compares to
telephone surveys in which don’t know and refusal responses are not read, but only volunteered by
respondents. As a result, online respondents are notably more likely than phone respondents to
select the “don’t know” response; however, the impact of refusal to respond was negligible.
• There is a tendency for phone respondents to provide more socially desirable or socially
acceptable answers about their behavior, whereas researchers believe the greater anonymity of an
online survey allows respondents to provide more honest, sometimes less flattering responses.
Given the noted differences seen between the telephone responses and online responses, trend data
showing findings from prior years has been excluded from this report.
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Current Financial Situation
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More than a third (35%) of workers and a fifth (21%) of retirees do not feel
financially secure.
How financially secure, if at all, do you feel? [50+ Workers and Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
11% 15%7%
16%20%
14%
52%48%
55%
21% 16%24%
Very secure
Somewhat secure
Not too secure
Not at all secure
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Overall, approximately a quarter (26%) of workers and retirees describe
their financial situation as fair or poor.
In general, would you say your financial situation is …? [50+ Workers and Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
8% 9% 7%
18% 20%16%
31%29%
32%
28% 26%29%
15% 14% 16%
Excellent
Very good
Good
Fair
Poor
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Although workers generally are more likely than retirees to be concerned
about their expenses, the top concerns for both groups are paying health
care expenses, covering unexpected expenses and future expenses, and
growing their investments.
15
How concerned, if at all, are you about your ability to…? [50+ Workers and Retirees]
Pay for health care expenses
Cover future expenses
Cover unexpected expenses
Grow your investments
Cover your housing expenses
Pay off any debt
Pay your current expenses
Pay for any educational expenses
60%
57%
56%
55%
41%
39%
38%
21%
45%
43%
46%
42%
25%
26%
24%
7%
Percentage Somewhat or Very Concerned
50+ Workers(n=439)
50+ Retirees(n=576)
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
About one in five (19%) workers worry about their finances while at work.
Do you worry about your personal finances while you are at work? [50+ Workers who are employed full- or
part-time (excluding those who are self-employed), (n=317)]
16
Yes19%
No80%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
More than a third (36%) of retirees say they are spending more on health
expenses as they age, while a majority (56%) say they are spending less
on the care and support of a relative.
Care or support for a relative
Entertainment
Major expenses (e.g., purchase of a car,major home repair)
Day-to-day expenses
Travel
Health expenses
32%
46%
49%
62%
32%
54%
56%
42%
36%
22%
43%
9%
9%
11%
14%
16%
24%
36%
More
Less
About the same
As you (and your spouse) age, do you find you spend more or less on..? [50+ Retirees (n=576)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
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Half (51%) of workers and a third (34%) of retirees report having a problem
with debt, but overall just one in nine (11%) describe their level of debt as
being a major problem.
Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers and
Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
59%49%
66%
30%36%
26%
11% 15%7%
A Major Problem
A Minor Problem
Not a Problem
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Among workers and retirees, those in poor or fair health, with household
incomes of less than $25,000, and ages 50-59 are more likely than others to
describe their level of debt as a problem.Thinking about your current financial situation, how would you describe your level of debt? [50+ Workers and
Retirees]
Less than $25,000 (n=120)
$25,000-$49,999 (n=207)
$50,000-$84,999 (n=251)
$85,000-$124,999 (n=207)
$125,000+ (n=230)
Poor/Fair (n=204)
Good (n=365)
Very Good/Excellent (n=444)
Widowed (n=100)
Divorced/Separated/Never Married (n=231)
Married/Living with Partner (n=684)
50-59 (n=362)
60-69 (n=367)
70+ (n=286)
Female (n=526)
Male (n=489)
48%
29%
31%
31%
22%
34%
33%
27%
31%
35%
29%
35%
32%
22%
32%
28%
18%
14%
12%
8%
4%
21%
9%
7%
10%
12%
10%
15%
8%
8%
10%
11%
A Minor Problem
A Major Problem
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
HO
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19
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Expected and Actual Age of
Retirement
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Although more than three in four (78%) retirees retired before age 65,
about seven in 10 (72%) workers don’t expect to retire until age 65 or
older—or expect to never retire.
Realistically, at what age do you expect to retire? [50+ Workers] / How old were you when you retired? [50+
Retirees]
Under 55 55-59 60-64 65-69 70+ Neverretire
1%
5%
23%
39%
16% 17%19%
22%
37%
19%
3%0%
50+ Workers(N=348)
50+ Retirees(N=527)
Mean Expected/Actual Age of Retirement
50+ Workers: 6550+ Retirees: 59
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
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About one in six (17%) workers say they have changed their expected
retirement age in the past 12 months; among these workers, three in four
(76%) expect to retire later than planned.
In the past 12 months, has the age at which you expect to retire changed? [50+ Workers (n=439)]. If yes: Do
you now expect to retire [sooner or later than planned?] [50+ Workers whose expected age of retirement
changed (n=76*)]
Yes17%
No82%
If yes*
Later, at an olderage than before
Sooner, at ayounger age than
before
76%
24%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
22
*NOTE: the number of 50+ workers whose expected age of retirement changed is small (n=76); therefore the percentages who expect to retire sooner
or later may not adequately reflect population percentages.
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Under 55 55-59 60-64 65-69 70+ Neverretire
1%
5%
20%
36%
14%
24%
1%4%
26%
42%
18%
10%
Poor, Fair orGood Health(n=185)
Very Good orExcellent Health(n=163)
Workers who rate their overall health as poor, fair or good are more likely
than those who rate their health as very good or excellent to expect to never
retire. On average, among those who expect to retire, their expected age of
retirement is nearly the same.
Realistically, at what age do you expect to retire? [50+ Workers who expect to retires]
Mean Expected Age of Retirement (Among 50+ Workers providing a retirement age)
Poor, Fair or Good Health 61Very Good or Excellent Health: 62
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
23
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Retirement Confidence
24
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About three in four (74%) workers and nearly nine in 10 (88%) retirees feel at
least somewhat confident that they will have enough money to take care of
their basic expenses during retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
7% 9% 5%
11%17%
7%
43%
44%
41%
39%30%
46%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
Overall, how confident are you that you (and your spouse) will have enough money to take care of your
basic expenses during your retirement?
25
NOTE: Due to rounding, the individual percentages shown in the graph may not sum exactly to the summed percentages stated above.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Two in three (67%) workers and eight in 10 (82%) retirees and feel at least
somewhat confident that they will have enough money to live comfortably
throughout their retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
10% 14%7%
14%18%
11%
47%
47%
47%
28%20%
35%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
Overall, how confident are you that you (and your spouse) will have enough money to live comfortably
throughout your retirement years?
26
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Workers (59%) are less likely than retirees (78%) to feel at least somewhat
confident that they will have enough money to take care of their medical
expenses during retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
10% 14%7%
19%26%
14%
46%
44%
48%
24%15%
31%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Overall, how confident are you that you (and your spouse) will have enough money to take care of your
medical expenses during your retirement?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
27
NOTE: Due to rounding, the individual percentages shown in the graph may not sum exactly to the summed percentages stated above.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Nearly three-fifths of workers (58%) and two-fifths of retirees (44%) are
not confident that they will have enough money to pay for long-term care
should they need it during retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
20% 26%16%
30%32%
28%
35%33%
36%
15% 9%19%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Overall, how confident are you that you (and your spouse) will have enough money to pay for long-term
care should you need it during your retirement?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
28
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Among workers eligible to receive Social Security benefits, more than a
third (36%) are not sure when they will begin claiming their benefits, and
more than one in 10 (13%) expect to claim their benefits before age 65. This
compares to more than half (56%) of retirees who began claiming Social
Security benefits before age 65.
50+ Workers(n=426)
50+ Retirees(n=533)
36%
9%
1%
9%
9%39%
3%
8%15%
17%24%
14%12%
4%
70 or older
66-69
65
63-64
62
Under age 62
Don't know/Not sure
At what age [will you]/[did you] begin to take Social Security retirement benefits? [50+ Workers and Retirees
who indicated they are eligible for Social Security benefits]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
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Half of workers and fewer than half (46%) of retirees are not confident that
Social Security will continue to provide benefits of at least equal value to
what today’s retirees receive.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
11% 11% 11%
37% 39% 35%
41% 41%41%
11% 9% 13%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Overall, how confident are you that the Social Security system will continue to provide benefits of at least
equal value to the benefits received by retirees today?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
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Half of workers and fewer than half (45%) of retirees are not confident that
Medicare will continue to provide benefits of at least equal value to what
today’s retirees receive.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
10% 9% 10%
38% 41% 35%
44% 41%45%
8% 7% 9%
Very Confident
Somewhat Confident
Not too Confident
Not at All Confident
How confident are you that the Medicare system will continue to provide benefits of at least equal value to the
benefits received by retirees today?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
31
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Among workers and retirees, retirement confidence increases as the
amount saved for retirement increases.
Less than $25,000(n=227)
$25,000 to 149,999(n=139)
$150,000 to $499,999(n=218)
$500,000 or more(n=177)
52%
87%
95%
99%
41%
77%
91%
98%
41%
68%
84%
92%
24%
38%
55%
83%
Percentage Somewhat or Very Confident
Am
ou
nt S
ave
d f
or
Re
tire
me
nt
pay for long-term careshould you need it duringretirement
take care of your medicalexpenses during retirement
live comfortably throughoutyour retirement years
take cae of your basicexpenses during yourretirement
32
Overall, how confident are you that you (and your spouse) will have enough money to . . .?
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Preparing for Retirement
33
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
A third (34%) of workers currently feel mentally or emotionally stressed
about preparing for retirement.
Not stressed at all
Not toostressed
Somewhat stressed
Verystressed
21%
45%
27%
6%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
Currently, how stressed are you mentally or emotionally, if at all, about preparing for retirement? [50+
Workers (n=439)]
34
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Before retiring, nearly one in four (23%) retirees felt mentally or emotionally
stressed about preparing for retirement. Among them, four in 10 (40%) began
to feel stressed less than 10 years before they retired.
Before you retired, did you ever feel mentally or emotionally stressed about preparing for retirement? [50+
Retirees (n=576)] / How many years before retirement would you say you began to feel mentally or emotionally
stressed about preparing for retirement? [50+ Retirees (n=130)]
Yes23%No
77%
n=130
Lessthan 5years
5-9 years 10-29years
30 ormoreyears
Don'tknow
22%18%
13%
5%
42%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
35
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Workers are less likely than retirees to estimate the amount of monthly
income they will need in retirement, calculate how much they will need to
cover health expenses in retirement, and prepare a formal, written financial
plan for retirement.
To prepare for retirement, have you [if worker] / did you [if retiree] (or your spouse)…?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
Prepared a formal, written financial plan forretirement
Talked with a professional financial advisor aboutretirement planning
Calculated how much you (and spouse) wouldneed to cover health expenses in retirement
Calculated how much you would need to save fora comfortable retirement
Thought about how you would occupy your timein retirement
Estimated how much income you (and spouse)would need each month in retirement
Estimated the amount of your Social Securitybenefit at your planned retirement age
21%
38%
43%
45%
58%
60%
66%
14%
35%
29%
48%
54%
49%
62%
Percentage stating ‘yes’
Workers(n=576)
Retirees(n=439)
36
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
By and large, workers (61%) are less likely than retirees (75%) to feel at least
somewhat confident that they are doing or did a good job of preparing
financially for their retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
12% 14%10%
19%24%
15%
43%43%
43%
26%18%
31%
Very Confident
Somewhat Confident
Not Too Confident
Not at All Confident
Overall, how confident are you that you (and your spouse) are doing [if worker] / did [if retiree] a good job of
preparing financially for your retirement?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
37
NOTE: Due to rounding, the individual percentages shown in the graph may not sum exactly to the summed percentages stated above.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
The median amount of money that workers expect they will need to
accumulate prior to retirement so they can live comfortably in retirement is
in the range of $500k - $749k.
Could not do calculation
Don't remember/know
Less than $100,000
$100,000-$249,999
$250,000-$499,999
$500,000-$749,999
$750,000-$999,999
$1 to $1.49 million
$1.5 to $1.9 million
$2 million or more
8%
19%
8%
9%
12%
10%
10%
10%
5%
9%
Estim
ate
d A
mo
un
t N
ee
de
d fo
r a
C
om
fort
ab
le R
etire
me
nt
38
How much do you think you will need to accumulate in total by the time you retire so that you can live
comfortably in retirement? [50+ Workers (n=439)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
Median Estimated Amount Needed
for a Comfortable Retirement
$500,000 to $749,999
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Workers believe they need to save about 26 percent of their total household
income each year, on average, so they can live comfortably in retirement.
Nearly half don’t know how much they will need to save.
Less than10%
10% to 19% 20% to 29% 30% to 39% 40% to 49% 50% ormore
Don't know
5%
18% 15%
4% 2%8%
46%
About what percentage of your total household income do you think you (and your spouse) need to save each
year from now until you expect to retire so you can live comfortably throughout your retirement? [50+ Workers
who gave an expected retirement age (n=439)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2016 Retirement Confidence Survey.
Mean Estimated Percentage of Total Household Income that Workers Believe They Will Need to Save Each Year in order to Live
Comfortably in Retirement
26%
39
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Generally, the amount that workers estimate they will need to accumulate
by the time they retire so they can live comfortably in retirement increases
as household income increases.
Less than $50,000(n=110)
$50,000 to$84,999(n=100)
$85,000to $124,999
(n=100)
$125,00 or more(n=129)
$250,000 to $499,999
$250,000 to $499,999
$750,000 to $999,999
$1 million to $1.49 million
Me
dia
n E
sti
ma
ted
Am
ou
nt
Nee
de
d f
or
Re
tire
me
nt
Household Income
Median Estimated Amount Needed for a Comfortable Retirement, by Household Income Level
How much do you think you will need to accumulate in total by the time you retire so that you can live
comfortably in retirement? [50+ Workers who plan to retire and who estimated the amount they will need for
a comfortable retirement]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
40
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Financial Advice
41
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Four in 10 retirees currently work with a financial advisor, and half of
workers plan to do so as they approach retirement.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
56%49%
60%
44%50%
40%
Yes
No
42
[50+ Workers] As you approach retirement, do you think you will work with a professional financial advisor? /
[50+ Retirees] Do you currently work with a financial advisor?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Approximately four in 10 workers and retirees have received investment
advice from a professional financial advisor who was paid through fees or
commissions. Have you (and your spouse) ever obtained investment advice from a professional financial advisor who was
paid through fees or commissions? [50+ Workers and Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
9% 9% 9%
50% 52% 48%
41% 39% 43%
Yes
No
Don't know
43
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Two in three workers and retirees say they would prefer to meet with a
financial advisor in person rather than online, if the costs were the same.
Suppose you were able to get financial advice at equal cost from an advisor you meet with in person and an
online advice provider. Would you . . .? [50+ Workers and Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
47% 46% 49%
19% 21% 18%
28% 30% 28%
3% 2% 3%
1% 1% 1%
Strongly prefer to use anonline advice provider
Somewhat prefer to use anonline advice provider
Have no preference
Somewhat prefer to meetan advisor in person
Strongly prefer to meet anadvisor in person
44
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among those working with a financial advisor or expecting to work with one,
workers (68%) are less likely than retirees (79%) to find it important that the
advisor manages their assets.
45
How important [will it be / is it] for the advisor you chose to …? [50+ Workers and Retirees who work or expect
to work with a financial advisor]
Provide information and advice about how tomanage your financial assets
Provide information and advice about how to covermedical and long-term care expenses
Provide information and advice about when toclaim Social Security
Provide a formal, written financial plan forretirement
Specialize in converting assets into retirementincome
Manage your financial assets for you
94%
91%
86%
84%
83%
68%
91%
66%
51%
72%
70%
79%
Percentage saying Somewhat/Very Important
50+ Workers(n=218)
50+ Retirees(n=229)
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
About seven in ten workers (73%) and retirees (71%) agree that the advice
they receive from a professional financial advisor is in their best interest.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
7% 6% 8%
19% 19% 19%
53% 57% 50%
19% 16% 21%
Strongly agree
Somewhat agree
Somewhat disagree
Strongly disagree
To what extent do you agree or disagree that the advice you receive from a professional financial advisor is in
your best interest?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
46
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among workers currently contributing to an employer savings plan, the
majority would be likely to seek advice regarding their plan from their
retirement plan provider or a financial services company or advisor.
An independent advice provider that providesadvice solely online
Your employer
A relative, friend or coworker
A professional financial services companyretained by your employer to provide advice
Your retirement plan provider
An independent financial services company oradvisor
18%
22%
29%
38%
41%
34%
4%
6%
11%
15%
21%
29%
22%
28%
40%
53%
62%
63%
SomewhatLikely
VeryLikely
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
[If currently contributing to a plan] Suppose you were making decisions about money in your current retirement
savings plan, such as how to invest the money, what to do with the money when you leave the employer or what
to do with the money when you retire. How likely do you think you would be to seek advice from...? [50+ Workers
who are currently contributing to an employer savings plan (n=212)]
47
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Saving for Retirement
48
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
More than seven in 10 workers (72%) and eight in 10 (80%) retirees have
personally saved for retirement.
[50+Workers] Not including Social Security taxes or employer-provided money, have you (and/or your spouse)
personally saved any money for retirement? / [50+Retirees] Not including Social Security taxes or employer-
provided money, did you (and/or your spouse) personally save any money for retirement before you retired?
These savings could include money you personally put into a retirement plan at work.
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
23% 27% 20%
77% 72%80% Have personally
saved for retirement
Have not personallysaved for retirement
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
49
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among workers and retirees, the likelihood of having personally saved for
retirement increases with total household income level.
Not including Social Security taxes or employer-provided money, have you (and/or your spouse) personally
saved any money for retirement? These savings could include money you personally put into a retirement
plan at work. [50+ Workers and Retirees]
Less than$25,000(n=120)
$20,000 to$49,999(n=207)
$50,000 to$84,999(n=251)
$85,000 to$124,999(n=207)
$125,000 or more(n=230)
61%
33%21%
14%5%
39%
67%79%
86%94%
Household Income
Have personallysaved for retirement
Have not personallysaved for retirement
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
50
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among workers who have personally saved for retirement, more than nine in
10 (93%) are currently saving for retirement.
Are you (or your spouse) currently saving for retirement? [50+Workers who have personally saved for
retirement (n=316)].
CurrentlySaving for Retirement
Not CurrentlySaving for Retirement
93%
7%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
51
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among workers who are not saving for retirement, nearly half (48%) would be
very likely to save if they were given an employer match, and about four in 10
(39%) would be very likely to save if their savings contribution was
automatically deducted from their paycheck.
Your employer automatically deducted 6% of yoursalary into a savings account for you, and you hadthe option to change/stop the contribution any time
Your employer automatically deducted 3% of yoursalary into a savings account for you, and you hadthe option to change/stop the contribution any time
Your savings contribution was automaticallydeducted from your paycheck
You qualified for an income tax refund based on thelevel of your contributions to your retirementsavings
Your employer matched your savings contribution
30%
31%
30%
37%
29%
32%
36%
39%
33%
48%
62%
67%
69%
70%
77%
SomewhatLikely
VeryLikely
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
[If employed and not saving for retirement] How likely do you think you would be to save for retirement if…? [50+
Workers (n=193)]
52
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Almost six in 10 workers feel at least somewhat confident that they know
how much to save each month for retirement, as well as how to choose and
protect their retirement assets.
In your ability to choose which products orfunds to invest your retirement contributionsin
That you know how to protect youraccumulated retirement savings when youtransition to retirement
That you know how much to contribute forretirement each month
41%
40%
42%
16%
18%
17%
57%
58%
59%
SomewhatConfident
VeryConfident
How confident are you (and your spouse)…? [50+ Workers (n=439)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
53
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
About three in 10 (31%) workers and retirees (29%) have less than $25,000
in savings and investments.
50+ Overall(n=761)
50+ Workers(n=353)
50+ Retirees(n=408)
30% 31% 29%
4% 5%3%
9% 8%9%
6% 6%5%
11% 11%12%
17% 18%17%
10%11%
10%
13% 10%15%
$1 million or more
$500,000 to $999,999
$250,000 to $499,999
$150,000 to $249,999
$100,000 to $149,999
$50,000 to $99,999
$25,000 to $49,999
Less than $25,000
Median Savings and Investments (Among those providing a total savings and
investment amount)
50+ Overall: $150,000 to $249,999 50+ Workers: $100,000 to $149,999 50+ Retirees: $150,000 to $249,999
In total, about how much money would you say you currently have in savings and investments, not including
the value of your primary residence? [50+ Workers and Retirees providing a savings amount]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
54
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
As workers’ and retirees’ total household income increases, the total
amount of their savings and investments also increase.
Less than $50,000(n=232)
$50,000 to $84,999(n=181)
$85,000 to $124,999(n=166)
$125,000 or more(n=182)
$1,000 to $9,999
$100,000 to $149,999
$150,000 to $249,999
$500,000 to $999,999
Household Income
Median Savings and Investments, by Household Income
In total, about how much money would you say you currently have in savings and investments, not including
the value of your primary residence? [50+ Workers and Retirees providing a total savings and investments
amount.]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
55
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Workers (45%) are less likely than retirees (60%) to have pension or cash
balance plans.
An Individual
Retirement Account
or IRA
Employer-Provided
Pension or Cash
Balance Plan
Employer-Sponsored
Retirement Savings
Plan
Other Personal
Savings or
Investments
58%53% 51% 52%
57%
45%
68%
50%
59% 60%
38%
54%
50+ Overall(n=1,015)
50+ Workers(n=439)
50+ Retirees(n=576)
Just to be sure we have the correct information, do you (or your spouse) currently have …?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
56
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Although retirees are more likely than workers to cite Social Security as a
major source of retirement income, Social Security is the most-cited major
source of expected or actual retirement income for both groups.
50+ Workers planning to retire
at some point (n=379)
Employment during
Retirement
IRA
Other Personal Savings
and Investments
Employer-Provided Pension
or Cash Balance Plan
Employer-Sponsored
Retirement Savings Plan
Social Security
38%
36%
31%
48%
21%
5%
49%
40%
43%
24%
32%
46%
13%
24%
26%
28%
47%
49%
Not a Source Minor Source Major Source
50+ Retirees (n=576)
Employment during
Retirement
IRA
Other Personal
Savings or Investments
Employer-Sponsored
Retirement Savings Plan
Employer-Provided Pension
or Cash Balance Plan
Social Security
72%
42%
34%
46%
34%
10%
23%
35%
40%
27%
19%
30%
6%
23%
26%
27%
47%
60%
Not a Source Minor Source Major Source
57
[Worker: Do you expect the following to be] / [Retiree: Is the following] a major source of income, a minor
source of income, or not a source of income in your (and your spouse’s retirement)?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
In the past year, workers saved an average of 16 percent of their total
household income for retirement.
Less than10%
10% to19%
20% to29%
30% to39%
40% to49%
50% ormore
Don'tknow
18%
29%
12%
3% 1% 3%
32%
About what percentage of your total household income did you save last year for retirement? [50+ Workers
expecting to retire at some point (n=318)].
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2016 Retirement Confidence Survey.
Mean Percentage of Total Household Income Saved for
Retirement in Prior Year
16%
58
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Fewer than one in 10 (9%) workers currently have outstanding loans from
their retirement savings plan.
Do you currently have an outstanding loan from your retirement savings plan? [50+ Workers with a retirement savings plan (n=212)]
59
Yes9%
No90%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Retirement Experiences
Compared with Expectations
60
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Approximately four in 10 or more retirees say their health care expenses
(45%) and other expenses (37%) are higher than they expected they
would be.
61
Compared with what you expected when you first retired, would you say your [health care/other] expenses in
retirement are . . .? [50+ Retirees (n=576)]
Health Care Expenses Other Expenses
6% 2%
8%8%
41% 54%
26%
26%
19%11%
Much higher than expected
Somewhat higher than expected
About the same as expected
Somewhat lower than expected
Much lower than expected
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among retirees with higher than expected expenses, half (51%) adjusted
their budget and slightly fewer than half (48%) reduced their spending to
manage the situation.
62
How did you cope with these higher-than-expected expenses? [50+ Retirees who say their health care and/or
other expenses in retirement are higher than expected, n=331)]
Adjusted their budget
Reduced other spending
Cut back or did without
Drew down (additional) money fromsavings/investments
Went into debt
Went back to work
Got help from family/others
Something else
51%
48%
31%
24%
9%
7%
4%
3%
(Multiple responses permitted.)
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Earlier than planned
47%
About when planned
49%
Later than planned
3%
Approximately half (49%) of retirees retired when planned; most of the others
(47%) retired earlier than planned, while very few (3%) retired later than
planned.
Did you retire . . . ? [50+ Retirees (n=576)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
63
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Muchlower
Somewhatlower
Aboutthe same
Somewhathigher
Muchhigher
8% 8%
35%
25% 23%
4% 7%
46%
27%
16%
Retired earlierthan planned(n=269)
Retired aboutwhen plannedor later (n=302)
Retirees who retired when planned or later than planned (43%) are less
likely than those who retired earlier than planned (49%) to say their
retirement expenses are higher than expected.
Compared with what you expected when you first retired, would you say your expenses in retirement are ...?
[50+ Retirees]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
64
NOTE: Due to rounding, the individual percentages shown in the graph may not sum exactly to the summed percentages stated above.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among retirees who retired earlier than planned, the most-cited reason for
doing so was having a health problem or disability.
65
Did you retire earlier than you planned because …? [50+ Retirees who retired earlier than they planned, n=269)]
You had a health problem or a disability
There were changes at your company, such asdownsizing or closure
You could afford to retire earlier than youplanned
You had another work-related reason
You had to care for a spouse or another familymember
You wanted to do something else
Changes in the skills required for your job
38%
29%
28%
18%
15%
11%
4%
Percentage stating ‘yes’
(Multiple responses permitted.)
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
More than seven in 10 (73%) retirees say their current account balances are
about what they expected or higher than they expected they would be at
this point in time; still a quarter (26%) say their current account balances
are lower than expected.
Much lower thanyou expected
Somewhat lowerthan you expected
About the same asyou expected
Somewhat higherthan you expected
Much higher thanyou expected
10%16%
43%
23%
8%
Compared with what you expected when you first retired, would you say [at this point in time], your current
account balances are…? [50+ Retirees (n=576)]
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
66
NOTE: Due to rounding, the individual percentages shown in the graph may not sum exactly to the summed percentages stated above.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Overall performance of savings and investments, the ability to add (or not) to
them and/or withdrawing more than expected are among the top reasons
retirees reported higher or lower than expected account balances.
Lower than Expected
Some other reason
Paid off debt or a mortgage
Don't have savings/savingswere depleted
Had health care costs
Savings & investmentsperformed worse than expected
Withdrew more than expectedfrom savings & investments
Have been unable to add tosavings & investments
2%
5%
11%
12%
15%
20%
24%
Higher than Expected
Some other reason
Income improved (e.g.,inheritance, sold property, got…
Withdrew less than expectedfrom savings & investments
Paid off debt or a mortgage
Was able to add to savings &investments
Savings & investmentsperformed better than expected
5%
5%
9%
11%
19%
26%
67
What is your main reason for saying that [compared to when you first retired, your current account balances are
higher/lower than you expected them to be at this point in time]? [50+ Retirees with higher than expected (n=148)
or lower than expected (n=176) account balances.
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVEDAARP RESEARCH | AARP.ORG/RESEARCH | © 2016 AARP. ALL RIGHTS RESERVED
Working in Order to Supplement
Income
68
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
About a third (32%) of retirees have worked for pay (mostly part-time) since
retiring, and more than half (52%) of workers expect to work for pay after
retiring.
50+ Workers who expect to retire (n=379)
Yes No Don't Know
52%
15%
34%
50+ Retirees (n=576)
Yes No
2%
20%
2%
8%
32%
68%
Yes, Seasonal/Sporadic
Yes, Full- & Part-time
Yes, Part-time
Yes, Full-time
69
[50+ Workers] Do you think you will do any work for pay after you retire? / [50+ Retirees] Have you worked
for pay since you retired?
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED 70
Among retirees who have worked for pay after retiring, the top reasons for
doing so are wanting to stay active and involved (90%) and/or because they
enjoy working (83%). Additionally, two in three (67%) say they did it to have
extra spending money.
70
Which of the following are reasons why you worked for pay after you retired? [50+ Retirees who worked for pay
after retiring, n=183]
Wanting to stay active and involved
Enjoying working
Wanting money to buy extras
A job opportunity
Needing money to make ends meet
Trying a different career
A decrease in the value of your savings orinvestments
Keeping health insurance or other benefits
28%
34%
38%
25%
22%
16%
14%
8%
62%
49%
28%
23%
17%
10%
8%
3%
90%
83%
67%
48%
39%
26%
22%
11%
Minor reason
Major reason
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.
AARP RESEARCH | AARP.ORG/RESEARCH | © 2017 AARP. ALL RIGHTS RESERVED
Among workers and retirees, nearly one in five (18%) do some kind of work
for themselves (not through an employer) to earn extra money; for more than
half (52%) of them, it is a supplemental source of their income.
Do you do any work for yourself (not for an employer) to earn money? Examples may include things like making
and selling jewelry, doing odd jobs for pay, making use of a hobby or special skill to earn money, driving for Uber,
etc. [50+ Workers and Retirees (n=1,015)]
71
Yes18%No
81%
n=187
Main sourceof income
Supplementalsource ofincome
Only a meansof coveringthe hobby
costs
Somethingelse
20%
52%
19%
8%
Data Source: Employee Benefit Research Institute and Greenwald & Associates, 2017 Retirement Confidence Survey.